This is a shift as until recent months, fund managers were reducing exposure to these sectors.
While the market may remain volatile this year, analysts expect equities to deliver positive returns by outperforming inflation and government bonds, supported by the fiscal stimulus in the US.
MMFs are a good option for the current environment, observes Sarbajeet K Sen.
Besides high portfolio yield, investors may enjoy capital gains in debt funds in 2023 as bonds rally in anticipation of rate cuts.
MFs have garnered record assets in the past one year, led by increased investor participation through SIPs and robust returns in mid-cap schemes.
Equity MF schemes recorded worst inflows in three and a half years at Rs 1,311 crore for November. Investors across the board have taken money off the table as markets have scaled new highs. Industry experts said SIPs had stayed intact, which is a healthy sign for the MF industry.
In September, net equity inflows stood at Rs 6,609 crore, compared to Rs 9,152 crore in the previous month. In the last four months, this is the lowest net inflow tally seen by the equity category.
The unlocking of the economy since June led to a significant recovery in various macro, micro and high-frequency data points, resulting in the equity markets surpassing their previous lifetime highs.
If you are in credit opportunity funds, income funds or dynamic bond funds for a long-term goal, stay put.
The number of equity schemes rose to 562 from 519 two years ago. Equity NFOs, in fact, have mopped up more than Rs 16,000 crore since 2018 - 2.7 times the Rs 5,948 crore collected in the preceding three calendar years.
Gold funds have returned -5.2 per cent, while the Sensex is down 7 per cent in the past year.
In April, the inflows into equity schemes dropped 60% compared to the previous month to Rs 4,608 crore, the lowest since Sept 2016.
In 2021, there is the risk of interest rates spiking. Investors should tackle duration risk with a longer investment horizon, suggests Sanjay Kumar Singh.
In a chat on rediff.com, Feroze Azeez offered valuable tips.
In 2015, foreign investors slowed net buying of Indian equities.
Of the 70 international feeder funds, more than half have made losses in 2014.
Nearly three-fourths of the debt money, as of April 30, 2019, was invested in securities with duration of less than three years.
If your fund's expense ratio has risen dramatically after Sebi's recent changes, compare it with the category average before switching.
Large-cap scrips are still trading at a discount to mid-caps.
Sebi directs freezing of all demat accounts not linked to Aadhaar by December 31
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
In October, the contribution through SIPs rose to Rs 79.85 billion, up 42% compared to the same month last year.
Debt funds have exposure of nearly Rs 8,000 crore to Zee group papers. Aditya Birla MF, HDFC MF, Franklin Templeton MF, and ICICI Prudential MF have the highest exposure, reports Samie Modak.
